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BKH - Black Hills News Story

$67.42 -1.2  -1.8%

Last Trade - 05/05/21

Sector
Utilities
Size
Large Cap
Market Cap £3.05bn
Enterprise Value £5.83bn
Revenue £1.29bn
Position in Universe 1555th / 6849

Black Hills Corp. Utilities Place New Generating Station Into Service

Wed 1st October, 2014 9:20pm
Black Hills Corp. Utilities Place New Generating Station Into Service

RAPID CITY, S.D., Oct. 1, 2014 - Black Hills Corp. (NYSE:BKH) subsidiaries Black Hills Power and Cheyenne Light, Fuel & Power today commissioned their jointly owned Cheyenne Prairie Generating Station, a $222 million investment built on schedule and on budget. The two utilities also closed the previously announced sale of a combined $160 million in bonds to finance the station's construction costs.

"This new generating station marks a significant milestone in our plans to ensure a long-term source of reliable electricity for customers of Black Hills Power and Cheyenne Light in Wyoming and South Dakota," said Linn Evans, Black Hills Corp.'s president and chief operating officer of utilities.

Black Hills Power's ownership in the natural gas-fired generating station replaces the utility's three oldest power plants - the 62-year-old Osage and 45-year-old Neil Simpson I plants in Wyoming, and the 54-year-old Ben French plant in South Dakota. The three coal-fired plants were retired in March of this year to comply with new Environmental Protection Agency air emissions regulations.

"Replacing Black Hills Power's three oldest coal-fired power plants is less expensive for customers than retrofitting the plants to comply with the new EPA standards," Evans said. "Our goal is to provide reliable, safe and cost-effective energy for our customers, while earning an appropriate return on our capital investments."

Cheyenne Light owns approximately 60 percent of the 132-megawatt generating station and Black Hills Power owns the balance. To finance construction costs, Black Hills Power sold $85 million in first mortgage bonds and Cheyenne Light sold $75 million.

Also today, Cheyenne Light and Black Hills Power implemented new rates in Wyoming, a measure previously approved by the Wyoming Public Service Commission. And in South Dakota, Black Hills Power implemented interim rates and anticipates a final ruling from the South Dakota Public Utilities Commission on its rate request in the first quarter of 2015.

Investor Relations:
Jerome E. Nichols
605-721-1171

Media Contacts:
Black Hills Power
Mutch Usera
P: 605-716-3951
C: 605-484-1476

Cheyenne Light, Fuel & Power
Sharon Fain
P: 307-778-2121
C: 307-286-2167

24-Hour Media Assistance:
866-243-9002

Black Hills Power, Inc.
Black Hills Power is the legacy utility business of Black Hills Corp. (NYSE: BKH) and has been delivering energy for more than 131 years. The electric utility serves 69,000 customers in 31 communities in western South Dakota, northeastern Wyoming and southeastern Montana.

Cheyenne Light, Fuel & Power
Cheyenne Light, Fuel & Power Company, a subsidiary of Black Hills Corp. (NYSE: BKH),serves 41,000 electric customers and 35,000 natural gas customers in the greater Cheyenne, Wyo., region.

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a growth-oriented, vertically-integrated energy company with a tradition of exemplary service and a vision to be the energy partner of choice. Based in Rapid City, S.D., the company serves 777,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company generates wholesale electricity and produces natural gas, oil and coal. Black Hills Corp.'s 1,948 employees partner to produce results that are improving life with energy. More information is available at www.blackhillscorp.com.

Caution Regarding Forward Looking Statements
This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements, including our ability and the timing of receiving regulatory approval to recover Black Hills Power's share of the operating costs and a return on its investment related to serving its South Dakota customers. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including the factors discussed above, our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and the timing in which new rates would go into effect, the risk factors described in Item 1A of Part I of our 2013 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.





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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Black Hills Corporation via Globenewswire

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